In the ever-evolving digital landscape, businesses in the UK are navigating a diverse array of online advertising options to reach their target audience. From display ads to social media marketing, understanding the different types of online advertising can be crucial for achieving marketing success.
Key Takeaways:
- Display Advertising – Includes banner ads, pop-ups, and rich media formats on websites, apps, and social platforms, accounting for a significant portion of digital ad spend.
- Search Advertising – Appears on search engine results pages (SERPs) like Google Ads, with the largest share of ad spend globally.
- Social Media Advertising – Encompasses platform-specific ads on Facebook, Instagram, TikTok, and others, with significant growth projected.
- Video Advertising – Includes short-form (Reels, Shorts, TikTok) and long-form video ads, delivering high ROI for marketers.
Display Advertising
Display ads, such as banner ads, pop-ups, and rich media formats, are a mainstay of digital advertising. These visually-driven ads are shown on websites, mobile apps, and social media platforms, accounting for a significant portion of digital ad spend. In fact, global digital ad channels are expected to reach 74.4% of total ad spend in 2025, with further growth projected into 2026[4]. The average cost per thousand impressions (CPM) across these platforms is £9.18 in 2026[1].
Display advertising offers businesses the opportunity to leverage visual targeting and retargeting techniques to engage their audience. This format can be particularly effective for building brand awareness, driving website traffic, and generating leads.
Search Advertising
Search ads, such as those found on Google Ads, occupy the largest share of global ad spend, projected to reach £352 billion in 2025 and growing 11.1% year-over-year[4]. This equates to nearly £1 billion per day spent on pay-per-click (PPC) advertising. The United States leads in per capita spend at £1,327 per person in 2025[4].
Search advertising allows businesses to target keywords and phrases that potential customers are actively searching for, making it a highly effective way to reach and convert qualified leads. By bidding on relevant long-tail keywords, businesses can enhance their visibility on SERPs and drive valuable traffic to their website.
Social Media Advertising
Social media advertising encompasses platform-specific ads on Facebook, Instagram, TikTok, and other popular social networks. The global spend on social media advertising is projected to reach £219 billion in 2026, nearly one-third of total digital ad spend, and grow 13.6% to £277 billion in 2025[1][4].
Facebook and Instagram currently capture 55% of social media ad revenue, while TikTok is expected to surpass £20 billion in 2026, a 35% year-over-year increase[1]. In the United States, social ad growth is forecasted to reach 14.6% in 2026[3]. Notably, social media advertising has an impressive average return on investment (ROI) of £5.2 per £1 spent[1].
Video Advertising
Video advertising, encompassing both short-form (Reels, Shorts, TikTok) and long-form content, has become increasingly prominent in the digital landscape. Over 60% of social media consumption is now dedicated to video, which accounts for 43% of all content and generates 120 billion+ daily views across platforms[1].
Short-form video ads have proven to be particularly effective, delivering 1.6 times higher ROI and experiencing a 36% year-over-year view growth[1]. Platforms like YouTube, which reaches 90% of 18-44 internet users monthly[1], and the rise of YouTube Shorts, Instagram Reels, and TikTok ads have made video a top-performing ad format, with 49% of marketers reporting it as the best ROI[7].
Conclusion
As businesses in the UK navigate the dynamic world of online advertising, it is crucial to understand the diverse range of options available. From display ads and search campaigns to social media and video advertising, each format offers unique advantages and can be strategically leveraged to drive brand awareness, website traffic, and conversions. By staying informed on the latest trends and industry insights, UK-based companies can make informed decisions and optimise their advertising efforts for maximum impact and growth.
Sources:
newmedia.com
IAB
DataReportal
Sprout Social
Webandcrafts
HubSpot
Safari Digital
WordStream
Smartly
